“I hereby make a gift of a portion of my LLC interests worth $X to my son, BUT, if the IRS audits me and says that this gift is worth much more than $X, than I really gave much less of my LLC interests so that this gift will not incur gift tax.”
While the above headline and gifting statement is an oversimplification, a recent Tax Court case, families using FLPs or FLLCs to make gifts to their children.